Applying location moves object back?
This is centainly not normal.

I would suggest: 


Move the object to where you want it
Go into Edit Mode
Select everything
Press shift+ s
Click Cursor to Selected
Get out of Edit mode
Apply Location
Go into Edit Mode again
Select everything again
Press shift+ s
Press Selection to Cursor


Make sure to not move the cursor after Step 5

OR:


Shift+ s
Cursor to Center
Shift+ Crtl+ Alt+ c
Origin to 3D Cursor